The Savings Game: Stable value funds beat bonds

11:03 PM,
May 5, 2013

Written by

Elliot Raphaelson
Tribune Media Services

Long-term investors should not have a significant amount of money invested in Treasury bills, money market instruments or garden variety savings accounts. The reason is simple: These options return less than 1 percent per year and don't keep pace with inflation.

Yet many people still park their money in these vehicles, simply for the sake of preserving their capital. They remember 2008, when practically all other investments lost significant value.

For the past few years, most bonds and bond funds have performed very well. However, many analysts have pointed out that interest rates have ...